TaxTMI 
TaxTMI 
2018 (9) TMI 673
X X X X Extracts X X X X
X X X X Extracts X X X X
....missioner on verification of the records from September 2012 to 21 December 2012 satisfied that the appellant without obtaining licence in ML-5 imported Molasses and kept it in their storage point at Chennai Harbour. The appellant paid the administrative charges in accordance with Rule 7 of the Molasses Control Rules. Thereafter, the appellant filed two writ petitions, one for refund of the amount collected by the Excise authorities and another for prohibiting the Excise Department from demanding administrative service fee in respect of transactions involving purchase of Molasses from outside Tamil Nadu and exported outside India through the Chennai Port. While dismissing the writ petitions, the Learned Judge opined that even without an intention to sell at the place where it was stored, but as part of the business by way of export sales, the transactions would attract the provisions of the Molasses Control Rules. The common order is under challenge at the instance of the writ petitioner. Summary of Submissions 2. The Learned Senior Counsel for the appellant contended that the appellant purchased 5000 MT Molasses from M/s. Sudalagunta Sugars Limited, Andhra Pradesh on 30....
X X X X Extracts X X X X
X X X X Extracts X X X X
....f molasses, Form ML-4 licence for possession and use of molasses, Form ML-5 licence for import or export of molasses and Form ML-6 for the transport of molasses within the State. 5. Rule 7 of the Molasses Control Rules provides the Procedure for the grant of licences and permit. Rule 7(2) (a) provides that every dealer or consumer holding a licence in Form ML-2 or Form ML-4, desiring to import molasses from places outside the State and every dealer desiring to export molasses outside the State shall take a licence from the Collector of the District in Form ML-5. Rule 7(2)(b) provides that the molasses imported/exported shall not be disposed of in any manner while in transit. There are also string of provisions dealing with the licence fee or otherwise called as administrative fee for export/import of Molasses. 6. The appellant is the holder of ML-2 licence for possession and sale of Molasses. The appellant was expected to pay the administrative charges and obtain ML-5 licence from the concerned Collector in case, the company is desiring to import molasses into the State of Tamil Nadu or export. 7. The appellant appears to have purchased 5000 Mt of Molasses f....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d under ML-5 licence. 12. The appellant appears to be under the impression that import would mean only the import from outside the country and export out of the country. There is absolutely no basis in the contention taken by the appellant. The Regulations 13. The Molasses Control Rules were framed under the Tamil Nadu Prohibition Act, 1937. Sections 3(6) and (7) defines export and import respectively. The provision reads thus : - "(6) "export" means - (a) to take out of any local area to which this Act applies to any other local area in the State of Tamil Nadu to which this Act has not been extended; or (b) to take out of the State of Tamil Nadu otherwise than across a customs frontier as defined by the Central Government. (7) "import" means - (a) to bring into any local area to which this Act applies from any other local area in the State of Tamil Nadu to which this Act has not been extended; or (b) to bring into the State of Tamil Nadu, including the bringing across a customs frontier as defined by the Central Government." 14. The Andhra Pr....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ohibition and Excise Department, contained the details of the inspection conducted by the Assistant Commissioner, Prohibition and Excise Department on 21 December 2012 at the storage premises of the appellant inside the Chennai harbour. There was no segregation of the stock intended for export vis-a-vis stock intended for local sale to prove that 5000 MT of Molasses was intended only for export to a particular country. The factum of payment of export fee by the M/s. Sudalagunta Sugars Limited on 18 October 2012 was taken as the basic material to prove that the Molasses was procured only for export. The appellant by mixing 5000 MT of Molasses with another 2785.925 MT of Molasses contributed for the loss of identity of the product exported from the State of Andhra Pradesh. 20. The Molasses procured from the State of Andhra Pradesh was transported to Chennai and it was stored at Chennai Port under the pretext that it is meant for export. The purchase was on 30 July 2012. The inspection was on 21 December 2012. The inspecting team inspected the entire records for the period from 1 September 2012 to 21 December 2012. The verification clearly revealed that the appellant was in po....